Laura wants to get 8% in real return of her certificate of deposit. If the annual inflation rate is estimated at 2%, how much should her nominal interest be? (If your answer is 89%, please write 89)

A certificate of deposit offers a nominal interest rate of 3.5 percent annually. If inflation is 1.5 percent, what is the real rate of return?A.2.5 percentB.2 percentC.1.75 percentD.1 percentSUBMITarrow_backPREVIOUS

Frank is going to lend Sarah $1000 for 1 year. Frank and Sarah agree that Frank should earn a 2% real rate of interest on the loan. The CPI index is 100 at the time Frank makes the loan and is expected to be 110 in one year. What nominal rate of interest should Frank charge Sarah?Group of answer choices14%12%10%8%

If the nominal interest rate is 8% and the inflation rate is 5%. Using the relevant real interest rate formula, what is the future value of an $1500 investment in one year?

An investment had a nominal return of 9.9 percent last year. The inflation rate was 3.1 percent. What was the real return on the investment?

This question does not follow from 22 e) above.  This is an independent question. 22 f)  Suppose that the monetary authority sets the real interest rate using the rule:  r =  0.02 + 0.5 (π – π*), where π is the inflation rate and π* is the inflation target. Suppose that current inflation rate (π) is 6% (or 0.06) and the inflation target (π*) is 2% (or 0.02).   What is the nominal interest rate? Write your answer in _______ %.   For example, if 7%, just enter 7.